Bill to limit new Neb. occupation taxes advances

LINCOLN, Neb. (AP) — Cities that don't already impose occupation taxes on alcohol, tobacco and motor-vehicle fuels would be banned from doing so in the future, under a bill that won first-round approval from Nebraska lawmakers.

The bill that advanced Friday was originally aimed at Omaha's new tobacco tax, but a compromise will allow the city to impose the tax until it expires.

City officials have promised lawmakers that the tax will sunset once it generates $35 million, or by 2022 at the latest. The revenue will help pay for a new cancer research center at the University of Nebraska Medical Center.

Sen. Bob Krist of Omaha says he agreed to the compromise after city officials stated publicly that the tax was temporary.

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The bill is LB474

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